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Best Places to Buy a Beach Property for Vacation Rentals in 2024

Best Places to Buy a Beach Property for Vacation Rentals in 2024

For many Hosts and property managers,  owning a beach house is a dream, offering the perfect mix of luxury and relaxation. The world is constantly changing, and the real estate and travel markets are constantly evolving, so choosing the right location to own a beach house can be daunting. 

This article will guide you through some of the best places to buy a beach house in 2024, considering various factors, including location and potential rental income.

Is Beach Property a Good Investment for Vacation Rentals? 

Investing in beach real estate for vacation rentals is lucrative and rewarding. Beach locations are perennially popular, offering breathtaking views, relaxation and a desirable lifestyle for vacationers. 

Moreover, beach vacation rental properties offer the potential for steady rental income, property appreciation, and personal enjoyment, making beach properties an attractive investment choice.

Beach properties are a sound investment in 2023 for several reasons, 

1. Strong demand

Beach properties continue to attract high demand for vacations and short-term rentals, ensuring a consistent income stream.

According to AirDNA, “ regions like Austin, Texas, Santa Rosa/Rosemary Beach, Florida, and Gulf Shores, Alabama, are experiencing a surge in real estate activity. Panama City, Florida, stands out with an impressive 80% increase in property listings and a noteworthy 60% rise in demand."

2. Profit potential

Many beachfront locations offer substantial rental income, making them profitable investments.

3. Appreciating values

Beach properties often appreciate over time, providing long-term growth potential.

4. Diversification

Investing in beach property can diversify your investment portfolio and reduce risk.

5. Lifestyle and enjoyment

Apart from financial gains, owning a beach property offers personal enjoyment and a place to relax.

6. Tax benefits

There may be tax advantages to owning beach property, such as deductions for mortgage interest and property taxes.

7. Emerging markets

Smaller cities and suburban areas are becoming lucrative beach property destinations with growth potential.

As reported by the New York Times ,"Beach houses in the United States are a prime investment for maximizing rental income, with California and Florida, including Santa Barbara, Los Angeles, and Miami, emerging as top-performing markets.”

“A recent AirDNA study comparing urban apartments, cabins, and beach houses revealed that beach properties consistently offer the highest revenue potential. Even New York's Long Island, particularly the Hamptons, has seen increased occupancy and daily rates, bolstering the profitability of beach house investments.” 

Best Places to Invest in a Beach Property in 2024

1. Kitty Hawk, North Carolina 

A charming coastal town, Kitty Hawk, North Carolina, is a popular vacation rental destination. It offers a unique mix of natural beauty and historical significance, making it an attractive choice for those seeking a beachfront getaway along the picturesque Outer Banks. 

Kitty Hawk offers a variety of rental properties, pristine beaches, and a friendly community that appeals to all types of travelers. From cozy beachfront cottages to spacious oceanfront homes, Kitty Hawk offers a variety of vacation rental options that will ensure visitors have a memorable and comfortable stay. 

In addition to its popularity among vacationers and family-friendly atmosphere, Kitty Hawk is a great place to invest in vacation rental properties or just relax in the country.

Statistics for Kitty Hawk, North Carolina, according to AirDNA

  • ADR $413.7

  • Occupancy Rate 66% 

  • Average Annual Revenue $100K 

  • RevPAR - $284.1 2. Hilton Head Island, South Carolina

Off the coast of South Carolina, Hilton Head Island boasts world-class golf courses, pristine beaches, and lush landscapes. A perfect blend of outdoor recreation and upscale amenities makes the island a charming vacation destination. Short-term rentals, including vacation homes, condominiums, and resorts can meet the diverse preferences of tourists seeking a memorable getaway. 

During the summer months, is when tourists flock to Hilton Head Island to enjoy its natural beauty and engage in recreational activities, short-term rentals are in high demand. Hilton Head Island continues to draw visitors throughout the year with its sandy shores, championship golf, and vibrant festivals, making short-term rentals ideal for those seeking a comfortable and immersive stay.

Statistics for Hilton Head Island, South Carolina according to AirDNA

  • ADR $ 405.6

  • Occupancy Rate - 70%

  • Average Annual Revenue  - $103K

  • REVPar - $296.7

3. Gulf Shores, Alabama

Gulf Shores, Alabama, is a hidden gem along the Gulf Coast and a prime location for vacation rentals. Nestled on the shores of the Gulf of Mexico, this coastal town offers a relaxed and family-friendly atmosphere, making it an ideal destination for vacationers seeking a laid-back beach getaway. 

Gulf Shores boasts many vacation rental options, from cozy beachfront condos to spacious, well-appointed beach houses. With its pristine white sandy beaches and stunning ocean views, the area provides an ideal backdrop for an unforgettable vacation. The city's warm climate, extensive water-based activities, and various seafood dining options make it a favorite among travelers. 

Gulf Shores' steady influx of tourists ensures a reliable rental income stream, making it an attractive choice for those interested in the vacation rental market. Whether you're looking to invest in rental properties or simply looking for a relaxing beach retreat, Gulf Shores, Alabama, offers visitors a welcoming and tranquil escape.

Statistics for Gulf Shores, Alabama according to AirDNA

  • ADR $356.3

  • Occupancy Rate 66%

  • Average Annual Revenue $85.5K  

  • RevPAR - $243.8

4. Corolla, North Carolina

Corolla, North Carolina, is a coastal paradise that has become an exceptional location for vacation rentals. Located on the northern Outer Banks, Corolla is renowned for its pristine beaches, charming seaside villages, and natural beauty, making it an attractive choice for those seeking a tranquil beachfront escape. 

Vacation rental properties in Corolla encompass many options, from luxurious oceanfront mansions to cozy cottages, ensuring there's something for everyone. The region's reputation for its wild horses and historic sites, such as the Currituck Beach Lighthouse, adds a unique allure for tourists. With the appeal of serene surroundings and abundant outdoor activities, Corolla offers a dream setting for vacationers. 

For investors, the consistently high demand for vacation rentals in this coastal haven presents an enticing opportunity for rental income. Corolla, North Carolina, promises good investment options for beachfront properties for investors exploring the rental market.

Statistics for Corolla, North Carolina according to AirDNA

  • ADR - $525.2

  • Occupancy Rate 68%

  • Average Annual Revenue  $130.6K

  • RevPAR - $371.5

5. Navarre, Florida

Vacation rentals are ideal in Navarre, Florida, a hidden gem on the Gulf of Mexico. A serene coastal retreat nestled between Pensacola and Destin, Navarre offers travelers a serene escape from the hustle and bustle of the coast. 

Navarre offers a range of vacation rental options, including Gulf-front condos with spectacular views and beachfront cottages. For beach enthusiasts, the town is known for its powdery white sand beaches and emerald waters. In addition to kayaking, paddleboarding, and exploring the Gulf Islands National Seashore, Navarre offers a calm atmosphere and natural beauty, making it a top destination for couples and families alike. 

As the area's popularity grows, the demand for rental properties remains steady, making Navarre Florida an attractive place to invest and a place where vacationers can enjoy a serene coastal escape.

Statistics for Navarre, Florida according to AirDNA

  • ADR - $359.9

  • Occupancy Rate - 67%

  • Average Annual Revenue - $88.3K

  • RevPAR -$248

6. Long Beach, California

Located on the stunning Pacific coast, Long Beach is a unique and vibrant urban beach destination, which makes it an ideal vacation rental destination. Long Beach combines the charm of a seaside city with the convenience of an urban center. Vacation rental options here are diverse, ranging from modern beachfront condos with panoramic ocean views to historic beach cottages exuding character. 

Visitor attractions in Long Beach include the Queen Mary, the Aquarium of the Pacific, and the bustling downtown area. Its mild climate and diverse culinary scene enhance its appeal further. 

For investors, Long Beach's popularity as a tourist destination ensures a robust demand for vacation rentals, making it a promising location for property investments. Southern California's Long Beach offers the best of both worlds, whether you're interested in beachfront property investments or coastal vacations.

Statistics for,Long Beach, California according to AirDNA

  • ADR - $257.1

  • Occupancy Rate - 69%

  • Average Annual Revenue - $64.4K

  • REVPar - $172.5

7. Edgartown, Massachusetts 

A top Martha's Vineyard vacation rental destination, Edgartown, Massachusetts is a charming coastal town known for its historic charm. Among the many rental options available in this idyllic New England destination are elegant Victorians, charming cottages, and waterfront properties. 

Aside from its white picket fences, picturesque lighthouses, and pristine beaches, Edgartown has a distinctly coastal atmosphere. The town's historic downtown area boasts boutiques, art galleries, and gourmet restaurants, while its maritime heritage and annual events, such as the Edgartown Regatta, add to its unique allure. 

The demand for vacation rentals in Edgartown remains strong, especially during summer, making it a desirable option for property investors looking to generate rental income. For travelers, Edgartown provides an enchanting escape that blends a rich history with the tranquility of coastal living, making it an exceptional destination for an unforgettable getaway.

Statistics for, Edgartown, Massachusetts according to AirDNA

  • ADR - $996.3

  • Occupancy Rate - 66%

  • Average Annual Revenue - $240.6K

  • RevPAR -$679.6

8. Camden, Maine

A charming coastal town, Camden, Maine, offers many vacation rental opportunities and a serene beauty that captivates visitors. Many rental properties are available in this picturesque New England destination, including historic sea captain's homes and cozy waterfront cottages. 

There are endless outdoor activities, from hiking to sailing, in Camden's coastal landscape, including rugged cliffs, pristine harbors, and the iconic Camden Hills State Park. A vibrant arts scene, boutique shops, and fine dining can be found in the town's quaint downtown. 

With its renowned Windjammer cruises and vibrant fall foliage, Camden is an attractive vacation rental investment option for investors. In Camden, Maine, you'll find the perfect blend of natural beauty and small-town charm for any investor seeking a peaceful coastal rental home. 

Statistics for, Camden, Maine according to AirDNA

  • ADR - $327.4

  • Occupancy Rate - 67%

  • Average Annual Revenue - $80.1K 

  • REVPar - $219.7

9. Santa Rosa Beach 

Santa Rosa Beach is a thriving coastal community and popular vacation destination along Florida's renowned Emerald Coast. Among the rental options in this picturesque region are Gulf-front condos, lavish beachfront houses, charming cottages, and eco-friendly beach retreats. In addition to its pristine white sand beaches and turquoise waters, Santa Rosa Beach offers a romantic setting for travelers. 

Visitors can explore the vibrant arts scene, unique boutiques, and various dining experiences in the nearby town of Seaside. The town is part of the larger South Walton region, famous for its artistic and eclectic atmosphere. Outdoor enthusiasts will love the state parks and nature reserves complementing the area's natural beauty. 

Vacation rentals are in high demand in Santa Rosa Beach, so it's a great place to invest in coastal rental properties. It provides a relaxing beach escape with plenty of opportunities for both leisure and adventure for vacationers. With its perfect blend of luxury and natural beauty, Santa Rosa Beach is the perfect place to invest in rental properties as well as enjoy a rejuvenated coastal vacation.

Statistics for,  Santa Rosa Beach according to AirDNA

  • ADR - $578.9

  • Occupancy Rate - 64%

  • Average Annual Revenue - $135.1K

  • REVPar - $376.9

10. Hatteras, North Carolina 

Vacation rentals in Hatteras, North Carolina, range from classic beachfront cottages to contemporary oceanfront homes. It is a top choice for vacation rentals on the Outer Banks. The calm, unspoiled beaches of Hatteras, rolling dunes, and maritime history provide a tranquil setting for beach lovers and water sports enthusiasts. 

Travelers seeking relaxation and outdoor adventure will find Hatteras a perfect place to escape. It is located near the Cape Hatteras National Seashore, where the Cape Hatteras Lighthouse stands as a historic landmark. In the peak summer season, when the area attracts beachgoers and water sports enthusiasts, Hatteras provides excellent rental income opportunities as a vacation rental investment. 

You can invest in a coastal rental property or plan a peaceful beach getaway in Hatteras, North Carolina. This city embodies coastal living and promises an unforgettable coastal experience.

Statistics for,  Hatteras according to AirDNA

  • ADR - $314.4

  • Occupancy Rate - 70% 

  • Average Annual Revenue - $80.3K 

  • REVPar - $226.6

Catch the Wave and Navigate to 2024’s Top Beachfront Profits

Investing in beach properties in 2024 can be an excellent and lucrative decision for many reasons. In addition to the allure of pristine coastal locations, property appreciation, and the satisfaction of relaxing beachside, it offers substantial rental income. 

Given the current state of travel and real estate in 2024, the travel and real estate landscape is ripe for this venture. Low interest rates, tax advantages, and the emergence of smaller cities as viable rental markets further boost beach property investments.

To maximize your returns and enjoy the endless benefits of owning a piece of paradise by the sea, thorough research and consultation with professionals are essential. As the market evolves, we hope you seize the opportunities and consider making your dream of owning beachfront property a reality. 

How can Hostaway Help?

Hostaway, a leading vacation rental software, is the ideal partner for your 2024 beach property investment journey. Our comprehensive suite of tools is designed to streamline the entire process, starting from efficient property management, channel distribution, and dynamic pricing to automated bookings and insightful data analytics, Our goal at Hostaway is to help you maximize your rental income by effectively marketing and managing your beach property, which includes gaining reviews and managing your reputation for attracting guests. 

By partnering with Hostaway, your beach property investment promises to be successful and highly profitable in the competitive vacation rental market. Book a demo call with one of our product specialists at a time that suits you best. Gain valuable insights and explore how Hostaway can seamlessly integrate into your property management enterprise, unlocking new growth opportunities.

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